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Euro zone investor morale hits two-year low in November

Reuters  |  BERLIN 

(Reuters) - Investor morale in the zone fell more than expected in November and hit its lowest level in just over two years, a survey showed on Monday, as concerns about U.S. trade policies and the future of Germany's weighed on sentiment.

group said its investor sentiment index for the zone fell to 8.8 from 11.4 in October. Analysts had expected a smaller dip to 10.1.

The November reading was the lowest since October 2016 and marked the third consecutive monthly drop.

A sub-index on current conditions fell to 29.3 from 33.0, hitting its lowest level since April 2017. A sub-index measuring expectations fell to -9.8 from -8.3 the previous month.

"The reasons for this development are manifold. There are external factors such as the U.S. president's trade policies as well as European issues," said Manfred Huebner, of

"The discussion about the future of the in Germany, the weakness of the sector and the budget issue in come to mind," Huebner added.

German consumer group vzbv filed a lawsuit against on Thursday over diesel emissions tests rigging, using new class-action rules that potentially make it easier to win damages from companies.

A separate index gauging investor morale in fell in November to its lowest level since February 2016 following Angela Merkel's announcement that she would step down as of her in December.

Merkel's coalition, which includes the Christian Democrats, their Bavarian allies and the centre-left Social Democrats, has been shaken by disputes over immigration and the

surveyed 991 investors from Nov. 1-3.

(Writing by Michael Nienaber; Editing by Michelle Martin)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 20:35 IST